Over at the Microsoft Small Business Center, they layout 5 steps for selling your business.  If you’re considering this process, take your time to do research and ensure you have your ducks in a row.  The author boils down the proces into the following stages:  1) Determine business valuation 2) Recast Financials 3) Prepare for seller financing terms 4) Keep it confidential 5) Hire a business broker.

The first two recommendations really go hand-in-hand and should be a part of the business valuation process.  Any experienced business valuation firm will recast the owners financials to ensure Seller’s Discretionarly Cash Flow (SDCF) is being accounted for in the fair market value of the business.  There is a huge difference in “tax value” and “fair market value”. 

There is obviously a tremendous amount of work, effort and expertise that goes into the sale of a business, but this brief article is great for the business owner who has thought about it, but is just not sure where to start and what to expect.  The bottom line message from this article and our own philosophies is to hire seasoned professionals to successfully guide you through the sale of your business.